11 best sporting goods stocks to invest in

In this article, we discuss the top 11 sporting goods stocks to invest in. You can skip our detailed analysis of these stocks and the current market situation, and go straight to the 5 best sporting goods stocks to invest in.

The billion-dollar sporting goods market encompasses various product categories, including sports apparel, workout equipment, licensed sporting goods, and footwear. The sports and outdoor category is expected to generate $75.24 billion in sales in 2022, with China accounting for the bulk of that amount, according to Statistical. By 2025, the market volume is expected to reach $100.80 billion, and revenue is expected to grow at an annual rate of 10.24% (CAGR 2022-2025). The average revenue per user (ARPU) is expected to be $70.29 in the sports and outdoor category. Along with the sports and outdoor category, the global sportswear market is expected to reach approximately $249 billion by 2026. The global sports equipment market is also expected to reach a value of $191.62 billion by 2026. According McKinsey, despite growing health awareness, changing channel choices and growing environmental concerns, the sporting goods industry continues to evolve. The sporting goods industry has managed to return to pre-COVID-19 growth levels despite difficult economic conditions.

Some of the best sporting goods stocks to invest in right now include NIKE, Inc. (NYSE:NKE), Lululemon Athletica Inc. (NASDAQ:LULU), and Under Armour, Inc. (NYSE:UA), among others.

11 best sporting goods stocks to invest in

Our Methodology

We focused on sporting goods companies with strong business fundamentals and growth incentives for this list. Hedge fund sentiment around each stock was derived from Insider Monkey’s database, which tracks 895 hedge funds in the second quarter of 2022.

The best sporting goods stocks to invest in

11. Big 5 Sporting Goods Corporation (NASDAQ: BGFV)

Number of hedge fund holders in Q2 2022: 9

Big 5 Sporting Goods Corporation (NASDAQ: BGFV) is a California-based sporting goods company that operates 433 stores in 11 states. The Company also offers athletic footwear, apparel and sports-related accessories.

Big 5 Sporting Goods Corporation (NASDAQ: BGFV) currently pays a quarterly dividend of $0.25 per share. As of October 24, the share’s dividend yield based on the last twelve months was 8.51% with a payout ratio of 35.59%.

At the end of the second quarter of 2022, 9 hedge funds in the Insider Monkey database held stakes in Big 5 Sporting Goods Corporation (NASDAQ:BGFV), up from 12 in the prior quarter. The collective value of these holdings is over $9.8 million. Of these hedge funds, DE Shaw held the largest stake in the company, worth $2.3 million. Dmitry Balyasny’s Balyasny Asset Management and Israel Englander’s Millennium Management held 164,568 and 30,407 shares of Big 5 Sporting Goods Corporation (NASDAQ:BGFV) at the end of the second quarter.

10. On Holding AG (NYSE: ONON)

Number of hedge fund holders in Q2 2022: 18

On Holding AG (NYSE: ONON) is a Zurich, Switzerland-based premium sporting goods company that sells athletic footwear and apparel. He includes tennis legend Roger Federer as one of his co-venturers. The company first offered its shares to the general public in September 2021, through a U.S. IPO, raising $746 million.

The company has been able to steadily increase revenue over the past two years, recording 64% revenue growth on an annual basis. Wall Street is bullish on On Holding AG (NYSE:ONON). On Oct. 20, Williams Trading analyst Sam Poser upgraded On Holding AG (NYSE:ONON) to Buy from Hold with a price target of $20. Additionally, on September 21, Exane BNP Paribas analyst Aubrey Tianello launched coverage of On Holding AG (NYSE:ONON) with an outperform rating.

According to second-quarter data from Insider Monkey, On Holding AG (NYSE:ONON) was found in the public equity portfolios of 18 hedge funds, with collective holdings in the company worth $419.7 million. of dollars. Henry Ellenbogen’s Durable Capital Partners is the largest shareholder of On Holding AG (NYSE:ONON) in the second quarter of 2022, owning 7 million shares worth approximately $124 million.

09. Clarus Corporation (NASDAQ: CLAR)

Number of hedge fund holders in Q2 2022: 18

Clarus Corporation (NASDAQ: CLAR) manufactures bullets and ammunition for military and sports target shooting. The company is based in Salt Lake City, Utah, USA.

Clarus Corporation (NASDAQ:CLAR) has a fortress balance sheet with current assets of $250 million exceeding current liabilities of $69 million more than three times. Additionally, Clarus Corporation (NASDAQ:CLAR) has been actively pursuing acquisitions over the past several years, which has more than doubled its revenue from 2016 to 2021. This year, it expects revenue growth of 25% and a operating profit of 27%. %. Clarus Corporation (NASDAQ:CLAR) is also paying a dividend of $0.03 for a yield of 0.86% as of October 24.

On Sept. 30, despite lowering his price target for Clarus Corporation (NASDAQ:CLAR) from $40 to $35, Jefferies analyst Randal Konik maintained a buy rating on the stock.

Hedge fund sentiment around Clarus Corporation (NASDAQ:CLAR) increased in Q2 2022, with 18 hedge funds long in the stock, up from 17 in Q1 2022.

08. Columbia Sportswear Company (NASDAQ:COLM)

Number of hedge fund holders in Q2 2022: 19

Columbia Sportswear Company (NASDAQ:COLM) is a Portland, Oregon-based manufacturer and marketer of footwear, outerwear and athletic apparel. The operational history of Columbia Sportswear Company (NASDAQ:COLM) is remarkable, with sales and profitability generally increasing favorably. Although the company expects a relatively bad year, stocks are nonetheless attractive from a cash flow perspective. The company has maintained leveraged free cash flow of $352.1 million since December 2021.

Columbia Sportswear Company (NASDAQ:COLM) expects net sales to grow at a three-year CAGR of 9% to 11%, from the midpoint of its 2022 financial outlook, reaching $4.5 billion to $4.7 billion in 2025. Operating margin is expected to reach approximately 14% of net sales in 2025. Diluted earnings per share are expected to grow at a three-year CAGR of 12% to 15% from the mid of 2022, reaching $7.35 to $7.95 in 2025.

On Sept. 27, Cowen analyst John Kernan raised his price target on Columbia Sportswear Company (NASDAQ:COLM) to $86 from $85 and maintained an outperform rating on the stock. At the end of the second quarter of 2022, 19 hedge funds in Insider Monkey’s database held stakes worth $135.8 million in Columbia Sportswear Company (NASDAQ:COLM), up from 23 in the prior quarter. worth $217.34 million. Among the hedge funds tracked by Insider Monkey, Ken Griffin’s Citadel Investment Group is a top shareholder in Columbia Sportswear Company (NASDAQ:COLM), with 602,741 shares worth more than $43 million.

07. Hibbett, Inc. (NASDAQ: HIBB)

Number of hedge fund holders in Q2 2022: 19

Hibbett Sports, Inc. (NASDAQ: HIBB), based in Birmingham, Alabama, is a leading athletic-inspired fashion retailer with nearly 1,100 Hibbett and City Gear specialty stores located in 35 states across the United States. United.

On Aug. 26, Baird analyst Justin Kleber raised his price target on Hibbett, Inc. (NASDAQ:HIBB) to $70 from $65 and retained an outperform rating on the stock. Experts believe that Hibbett, Inc. (NASDAQ:HIBB) stock is incredibly cheap on an absolute basis, with a PE ratio of 7.25 compared to the industry median of around 9.46. The company paid shareholders a quarterly dividend of $0.25 on September 20, with a record on September 8. It has a dividend yield of 1.80% and a payout rate of 13.02% as of October 24.

19 out of 895 hedge funds tracked by Insider Monkey held positions in Hibbett, Inc. (NASDAQ:HIBB) at the end of the second quarter. The combined value of these interests was $91.35 million. Dmitry Balyasny’s Balyasny Asset Management was the largest shareholder at the end of the second quarter, with 430,309 shares worth $18.8 million.

Just like NIKE, Inc. (NYSE: NKE), Lululemon Athletica Inc. (NASDAQ: LULU) and Under Armour, Inc. (NYSE: UA), Hibbett, Inc. (NASDAQ: HIBB) is one of the best items in sport. stocks to invest in.

06. Vista Outdoor Inc. (NYSE: VSTO)

Number of hedge fund holders in Q2 2022: 25

Vista Outdoor Inc. (NYSE: VSTO) is an American manufacturer and marketer of outdoor sports and recreation products. Vista Outdoor Inc. (NYSE: VSTO) sells over 40 labels. The recent acquisition of Simms Fishing Products added approximately $110 million in net sales, bolstering the company’s top line. The company has a market capitalization of $1.50 billion with a P/E ratio of 2.99 as of October 24 compared to the industry median of 9.46. The stock is therefore relatively cheap and is one of the best sporting goods stocks to invest in.

Analysts are positive about the outlook for Vista Outdoor Inc. (NYSE: VSTO). On September 20, Jefferies analyst Anna Glaessgen launched Vista Outdoor Inc. (NYSE: VSTO) coverage with a Hold rating and a price target of $26. B. Riley analyst Eric Wold on Sept. 19 reiterated a buy rating on Vista Outdoor Inc. (NYSE: VSTO) with a price target of $51.

Of the 895 hedge funds surveyed by Insider Monkey for their Q2 2022 holdings, 25 had invested in Vista Outdoor Inc. (NYSE: VSTO). Of these, Jeffrey Gates’ Gates Capital Management is the largest investor in Vista Outdoor Inc. (NYSE: VSTO). She owns 5.5 million shares worth $155 million.

Along with NIKE, Inc. (NYSE: NKE), Lululemon Athletica Inc. (NASDAQ: LULU) and Under Armour, Inc. (NYSE: UA), Vista Outdoor Inc. (NYSE: VSTO) is one of the top sporting goods . stocks to invest in.

Click to read on and see the top 5 sporting goods stocks to invest in.

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Disclosure. None. 11 best sporting goods stocks to invest in is originally published on Insider Monkey.

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